Schroder Real Estate has invested around €100m in Stuttgart for a German client.
The investment manager said it bought the Bosch-Areal property, the former headquarters of Robert Bosch.
The 40,000 sqm mixed-use asset, built in 1900, is let to 50 tenants.
Sascha Harms, head of real estate investment for Germany, said: “The Bosch Areal’s heritage and architectural merits create an ideal mixed-use environment that combines working, living, entertainment and convenience retailing in a central location.
“This asset is hence a relatively defensive component in our investment strategy, and, given the strength of the Stuttgart leasing market, we are anticipating a highly stable cash-flow with upside potential from active asset management.”
Harms said the asset, which includes office and retail space and a cinema, appealed for its diversified tenancy structure and high occupancy rate of around 95%.
“The mixed uses provide this investment with a high degree of diversification in itself,” he said.
Schroders said it had also invested in Stockholm, Helsinki, Madrid, Brussels and Paris this year.